The Goods and Services Tax Act has widened its network and engulfed more than 3 million indirect taxpayers, since its launch in the year 2017. But the surprising fact of this hulking achievement is that most of the newcomers in the regime are small businesses suppressed by the burden of GST and its compliance mechanism and are of minimal benefit to the government treasury.
The prime motive of the new taxation regime was to reform the taxation in India and put an end mark on the businesses that were trying to forge the overall earlier taxation process. And for your information, most of the entities indulged in the manipulation of the taxation processes were big businesses and giant pocket holders keeping eyes peeled on their immense capital. Still, the government after the implementation of the GST regime could only bring a minimum of 10 percent of these big businesses being responsible for the majority of the tax revenue collection in the nation. Whereas, on the other hand, the small businesses account for the 90% of the taxpayers under GST but their overall input in the revenue and tax liabilities is minuscule.
The core problem
The people are unaware of the possibilities that are present amidst the hassle of networks and are flourishing with a fine rate in the market. This lack of information makes the taxpayers to only look forward to the government portal that sometimes could turn into a nightmare. In the thick of the taxation, the GST compliance blooms providing a commendable assistance for those who feel left out of the new taxation regime. Here are some of the high-quality benefits that can be availed by using a compliance tool:
1. Import/Export data– You cannot move any step further in GST without correct invoice creation. And in order to do that you’d be required to keep an uncompromised record of everything that you deal in or involves money. With the help of a compliance tool, you can automatically create invoice and even import/export data of different GSTINs of yours and your client’s businesses. Basically, the technological advancement in the tool reduces your workload as once you enter the information, it automatically retrieves the information the next time you make the entry.
2. Tax calculation– Moving one step ahead after the invoicing part comes tax calculation. Now no matter how big payments you have made or received, the compliance tool will make the calculation easy and efficient. It also comprises an integrated tool stretch that helps the user in determining the codes following the type of supply that makes the calculation not only meaningful for the tax payment but for the overall procedure of GST. On the other hand, the calculation will be done within seconds.
3. Input tax credit and filing return– Although every aspect of GST are important but these two factors have an importance of a higher degree. Precisely, every initial step goes waste if you aren’t able to flawlessly file returns or claim the tax you paid on the inputs of the goods and services. The GST compliance tool brings ease to the return filing process. With every up-to-date information and updates of GST and the access to all the GSTR forms leaves a very little scope for your inputs. All you need to do is provide information as suggested by the tool. Similarly with the input tax credit, since the invoices are maintained every now and then, the calculation and claim of the money paid on the inputs become effortless because of all the required information available beforehand on the compliance tool.
There are other benefits of this tool that is not related to taxation but your business. The less time you spend strangled in the hassles of the taxation, the more time you will be able to give into your business especially if you own a small-scale one. You would experience an intensified change in the core competencies of your business since both, the time and cost would be reduced that would have been invested in the new taxation process.
Summing up
Being in a small business you might feel an urgency of a solution that can resolve all the hindering factors of the new taxation regime. For such requirements, GST compliance tool is no less than a good fortune. With an optimum use of the tool that shields your business from every circumstance that could bring it down or clog its system. And as India is a giant hub for SMEs all around the world, the people willingly appreciate the introduction of such mind-blowing and helpful technology into their lives. Avoiding few errors in the judgments of the compliance, you all can take the assistance of one such marvelous human creations of all time.
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